Corporation Tax Act 2009 section 1218ZCC

The UK expenditure condition

Section 1218ZCC sets out the minimum proportion of core exhibition production expenditure that must be spent in the United Kingdom in order to qualify for museums and galleries exhibition tax relief.

• At least 25% of core expenditure on producing the exhibition must be UK expenditure — meaning spent on goods or services used or consumed in the United Kingdom.
• Where expenditure needs to be split between UK and non-UK amounts, the apportionment must be made on a just and reasonable basis.
• The Treasury has the power to amend both the 25% threshold and the definition of UK expenditure by regulations.
• Relief may be given provisionally on the basis that the UK expenditure condition will be met, with provisions for clawback if it is ultimately not satisfied.